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Sharing Economy

Sustainable mobility: can the world speak with one voice?

Nancy Vandycke's picture

 
The transport sector is changing at breakneck speed.
 
By 2030, global passenger traffic is set to rise by 50%, and freight volume by 70%. By 2050, we will have twice as many vehicles on the road, with most of the increase coming from emerging markets, where steady economic expansion is creating new lifestyle expectations and mobility aspirations. Mega-projects like China’s One Belt, One Road could connect more than half of the world’s population, and roughly a quarter of the goods that move around the globe by land and sea.
 
These transformations create a unique opportunity to improve the lives and livelihoods of billions of people by facilitating access to jobs, markets, and essential services such as healthcare or education.
 
But the growth of the transport sector could also come at the cost of higher fossil fuel use and greenhouse gas emissions, increasing air and noise pollution, a growing number of road fatalities, and worsening inequities in access.
 
Although these are, of course, global challenges, developing countries are disproportionately affected.
 
The vast majority of the one billion people who still don’t have access to an all-weather road live in the developing world. Although low and middle-income countries are home to only 54% of the world’s vehicles, they account for 90% of the 1.25 million road deaths occurring every year. If we don’t take action now, transport emissions from emerging markets could triple by 2050, and would make up 75% of the global total.
 
While the case for sustainable mobility is evident, the sector still lacks coherence and clear objectives. There is a way forward, but it requires pro-active cooperation between all stakeholders.
 
That’s what motivated the creation of Sustainable Mobility for All (SuM4All), a partnership between a wide range of global actors determined to speak with one voice and steer mobility in the right direction.
 
SuM4All partners include Multilateral Development Banks, United Nations Agencies, bilateral organizations, non-governmental organizations, civil society organizations, and is open to other important entities such as national governments and private companies. Together, these organizations can pool their capacity and experience to orient policymaking, turn ideas into action, and mobilize financing.

Who shares in the European sharing economy?

Hernan Winkler's picture
Data on the sharing economy (Uber, Airbnb and so on) are scarce, but a recent study estimates that the revenue growth of these platforms has been dramatic. In the European Union (EU), the total revenue from the shared economy increased from around 1 billion euros in 2013 to 3.6 billion euros in 2015. While this estimate may equal just 0.2% of EU GDP, recent trends indicate a continued, rapid expansion.

This is important, as the sharing economy has the potential to bring efficiency gains and improve the welfare of many individuals in the region.

This can also generate important disruptions.

While online platforms represent a small fraction of overall incomes, the share of individuals participating in these platforms is large in many European countries. For example, roughly 1 in 3 people in France and Ireland have used a sharing economy platform, while at least 1 in 10 have in Central and Northern Europe (see figure below).

At the same time, the share of the population that has used these platforms to offer services and earn an income is also significant, reaching 10% or more in France, Latvia, and Croatia. This means that at least one out of every ten adults in these countries worked as a driver for a ride-sharing platform such as Uber, rented out a room of his or her house using a peer-to-peer rental platform such as Airbnb, or provided ICT services through an online freelancing platform such as Upwork, to name a few examples.

Traffic jams, pollution, road crashes: Can technology end the woes of urban transport?

Shomik Mehndiratta's picture
Photo: Noeltock/Flickr
Will technology be the savior of urban mobility?
 
Urbanization and rising incomes have been driving rapid motorization across Asia, Africa, and Latin America. While cities are currently home to 50% of the global population, that proportion is expected to increase to 70% by 2050. At the same time, business-as-usual trends suggest we could see an additional 1 billon cars by 2050, most of which will have to squeeze into the already crowded streets of Indian, Chinese, and African cities.
 
If no action is taken, these cars threaten literally to choke tomorrow’s cities, bringing with them a host of negative consequences that would seriously undermine the overall benefits of urbanization: lowered productivity from constant congestion; local pollution and rising carbon emissions; road traffic deaths and injuries; rising inequity and social division.
 
However, after a century of relatively small incremental progress, disruptive changes in the world of automotive technology could have fundamental implications for sustainability.
 
What are these megatrends, and how can they reshape the future of urban mobility?

Media (R)evolutions: What’s the future of the sharing economy?

Darejani Markozashvili's picture
New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

Globally, more and more people are embracing the sharing or platform economy. Some estimate that the sector’s revenues will increase to $335 billion globally by 2025. According to the Future Jobs Survey, conducted by the World Economic Forum, among top technological drivers of industrial change by 2020, the sharing economy, crowdsourcing takes the fifth place, with mobile internet, cloud technology taking the lead.
 


So what will the impact of these drivers be on the industries? Will there be new industries born as a result of these transformations? If so, will we be able and ready to respond to those changes? Will we have necessary skill sets to compete in the work force? Future holds both opportunities and challenges for industries, corporations, governments, and others concerned with the technological advancements.
 
What exactly is the sharing economy? Are you using some of its platforms? Do you benefit from their services? 

Keeping pace with digital disruption: Regulating the sharing economy

Cecile Fruman's picture
Globalization in the 21st century is increasingly driven by digitization, as is described in new research by the McKinsey Global Institute. MGI's recent report notes that, since 2007, trade flows have slowed and financial flows have not fully recovered while digital information flows have soared. [See Footnote 1.]

The World Economic Forum describes this transformation as the “Fourth Industrial Revolution,” because the speed and extent of disruption is unprecedented.

A key trend of this revolution is the emergence of technology-enabled, peer-to-peer and business-to-peer platforms that facilitate commerce. These platforms – most commonly referred to as the “sharing economy” or the “collaborative consumption economy” – have grown exponentially in recent years, disrupting existing industry structures and value chains in developed and emerging markets.

Notably, growing internet and mobile penetration catalyzed the growth of disruptive firms and innovations, such as Uber and Airbnb, in a number of middle-  and low-income countries. However, as highlighted by the 2016 World Development Report, for this digital revolution to be inclusive, and for it produce dividends for the poor, its “analog complements” – such as the institutions that are accountable to citizens and the regulations that enable workers to access and leverage this new economy – should also be in place.

The global proliferation of these collaborative platforms poses new challenges for regulators trying to keep pace with rapidly evolving business models. This issue was at the heart of discussions between former Head of Public Policy at Facebook, Uber and DJI, Corey Owens, and Professor of Law at Howard University and former regulator at the Federal Trade Commission, Andy Gavil, at the 2016 Business Environment Forum that took place in Washington from May 17 to 19.
 




 

The things we do: Why people hate Uber’s surge pricing so much

Roxanne Bauer's picture

Globally, citizens from Guadalajara to Chengdu both love and loath ride sharing app, Uber. 

We love it for the convenience, the ease with which we can pay, and the ability to avoid intemperate weather conditions— all though a few taps on our mobile phone. 
But… we loath it when surge pricing is in effect.  “Surge pricing” increases the cost of rides by many times the normal fare when demand is swelling, most commonly at rush hour, during inclement weather, or on a public holiday.  In these cases, the supply of drivers is constant or even low, creating a shortage of available rides.  By raising the price of each ride, Uber encourages more drivers to pick up passengers and rations the available supply of rides to the customers who value the service the most (those who are willing to pay more).
 
Nevertheless, while surge pricing may make economic sense, it feels like price gouging for many customers.  The recent clampdown on surge pricing by the Delhi and Karnataka governments illustrates the intense debate over Uber’s policies that has been circulating worldwide. Delhi chief minister Arvind Kejriwal even called surge pricing “daylight robbery”.
 
The debate has polarized opinion not just in India, but also in cities as diverse as Sydney, Paris, New York and Budapest. The reaction is even more severe when there is an emergency, such as during the December 2014 hostage crisis in Sydney, where a masked gunman held people captive in a café. As the central business district was cleared out by police, surge pricing automatically kicked in. Customers were appalled by Uber’s apparent insensitivity to the situation. The outrage grew so intense that Uber was forced it to suspend surge pricing and offer free rides.

Media (R)evolutions: Digital companies don't need to 'own' anything when they can share

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

Traditionally, those with the largest empire or who controlled the most resources were considered to be the most powerful and successful. However, recent developments in digital technology have spawned a new breed of enterprise that dominates their respective industries without actually “owning” tangible assets.

The world's largest accommodation provider, Airbnb, doesn't own real estate. Alibaba, the world's leading e-commerce company, doesn't have any inventory. Facebook, the most popular media owner worldwide, doesn't create its own content. And Uber, the largest taxi company in the world, does not own any vehicles.

Nowhere is the sharing economy more disruptive than in rental/leasing services. This graphic, from PricewaterhouseCoopers in the UK, illustrates the expected growth of various rental sectors within the sharing economy.  These sectors are likely to grow much quicker than traditional rental sectors, and "the least developed sectors today, such as P2P finance and online staffing, could grow the quickest of all."

PWC Sharing Economy graphic